Money News
8th August 2008
Pension schemes leave Brits confused
Retirement planning is a source of confusion to millions of Britons with many unable even to distinguish a state pension from a personal pension.
Research conducted by Halifax found that close to two-thirds of people (61 per cent) were unable to identify a state pension as one that is provided by the government to everyone by the government and a personal plan as one taken out by an individual of their own volition.
Meanwhile, 56 per cent of respondents did not understand the meaning of an annuity and 83 per cent did not know how much of their personal pension they will be able to take as a tax-free sum when they retire.
Karen Crowshaw, managing director of Halifax Financial Services, commented: "Our research highlights confusion over pensions amongst the British public. We are issuing a timely reminder for people to start thinking about their retirement plans."
Halifax conducted its study to coincide with the 100th anniversary of the introduction of the state pension by then-prime minister David Lloyd George.
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